Mr. Michael J. FosterTo ask the Secretary of State for Education and Employment what guidance his Department gives schools on the level of reserves which they should hold. [64954]
§ Ms Estelle MorrisThe Department does not issue detailed guidance on this matter. However, reserves held by schools should be used effectively, and to this end the Department has encouraged local education authorities to recycle reserves through loan schemes, while preserving the right of schools to draw on their reserves when needed. Authorities are also permitted to require schools to report on the intended use of reserves in excess of a certain level as determined by the authority, so as to encourage a planned approach to the holding of reserves.